How To Sell Structured Settlements
Need Quick Money?
You Don't Have To Wait For
next Structured Settlement
Cash flow industry specialists in helping people sell structured
help you or a loved one
sell annuity payments
from your settlement for an immediate lump sum payment.
What Are Structured
Settlements are agreements to make payments over time in exchange for a
release from liability arising from accidents, negligence and
malfeasance. They are important for their role in resolving many
disputes and are often use in personal injury settlements, but are
common in medical malpractice and workers' compensation insurance
settlements, and wrongful death lawsuit settlements.
settlements can take many different forms, but they all work
essentially the same: Instead of offering a lump sum payment to settle
a dispute, a defendant or his insurer agrees to provide the injured
person (the "plaintiff") a guaranteed series of periodic payments over
a predetermined period of time. To accomplish this the defendant or
insurer buys either an insurance annuity or U.S. Treasury bonds.
Can I Sell My Structured Settlement?
your settlement is an annuity settlement, you can assign your future
to an annuity buyer in exchange for a lump sum payment of cash.
the case in selling mortgage notes and land contracts – or any other
cash flow, for that matter – note buyers
will offer you less
full face value of your annuity settlement because a dollar
today is worth more than a dollar in the future (the "time value
of money"). An
annuity buyer will discount the value of your future structured
settlement payments to achieve its required investment yield.
The stories are often the
same: you or your loved one are seriously
injured in an accident or are the victim of medical malpractice,
wrongful death, or any other negligence or malfeasance. You are offered
what seems to be reasonably fair and sensible compensation for
loss: future payments guaranteed by a big insurance company. Your
lawyer tells you that annuity settlements are the method used most
often in cases like yours because they are good for everyone.
waited for years to settle your case. You borrowed money to keep your
head above water. You receive your first structured settlement payment
... second ... and third. Your income is lower now, so you make
adjustments in your lifestyle, but the bills are piling up and it is
getting harder to make ends meet. Suddenly, things go terribly wrong,
and you find yourself in a financial crisis. You go to your bank to get
a loan, but you are turned down because your credit is a wreck. When
you call the insurance company that is sending your structured
settlement payments, you are told there is nothing they can do
... and that it not legal to sell structured settlements.
insurance companies take the position that it is not legal to sell
structured settlements and will advise any recipient of a structured
annuity settlement not to try to sell it to an annuity buyer. Some have
incorporated specific non-assignment language in their annuity
contracts. Though it is true that the annuitant does not own and,
therefore, cannot sell the annuity itself, he does own the
right to receive
and sell the annuity payments.
Selling A Structured Settlement
the time of settlement, structured settlements are designed to benefit
everyone involved in the dispute. The plaintiff gets a guaranteed,
tax-free series of payments, the defendant and his insurer are released
from liability, and the insurer saves thousands in legal fees and can
use its expertise in the financial markets to minimize its loss. Though
they usually continue to serve the interests of the defendant and his
insurer, annuity settlements are not always the best long-term solution
for the plaintiff. Circumstances can and do change for those receiving
structured settlement payments. And since structured settlements are
rigid and inflexible, they often eventually fail in their intended
sell a structured settlement for a lump sum payment, you will have to
find a contract buyer or note broker who understands them and how they
work. Interview several. Look for note buyers
who have the industry
contacts and the specialized knowledge and experience in helping people
sell structured settlements.
How To Sell Structured Settlements: Step-By-Step
The steps required to sell structured settlements are fairly simple:
- An experienced annuity buyer will
first ask you how much money you need. You can sell annuity payments to
achieve a certain lump sum payment or to receive the highest amount of
immediate cash possible, so your annuity buyer will want to understand
- Next, your annuity buyer will ask you for a copy of
your annuity settlement or contract. This is the key document in
selling a structured settlement, and most likely, the only
documentation you will need to sell your annuity settlement.
a week, you should have an offer. A professional annuity buyer will
always provide an offer to purchase an annuity settlement in writing.
Review it carefully. Make sure it specifies how much you will net from
the transaction, and exactly how many of your structured settlement
payments the investor is purchasing.
- If you agree to the
offer, you will be asked to sign an assignment letter to formally sell
your annuity payments and receive your lump sum payment. After the
annuity buyer collects the purchased payments, the remaining payments
will revert to you.
As you can see, it is
, and converting a portion of an annuity
settlement to cash
often makes sense after a distressing, life-altering injury – not to
mention the agonizing process of getting your just compensation. Since
an annuity buyer looks only to the annuity settlement and not your
credit, he is able to provide funds when no one else will.
you decide to sell annuity payments, invest the time necessary to find
a professional annuity buyer to make this process
least, quick and